After failing to secure an exemption for the entertainment industry, stakeholders have made a last-minute proposal to mitigate the impact of California‘s new business tax credit regulations on Hollywood.
State Assemblymember Rick Chavez Zbur and Senator Ben Allen on Friday introduced AB/SB 186, which if passed would exempt indie projects from the state‘s new business tax credit caps and allow all productions with state tax credits to monetize more of their refunds, faster.
“Last year, we took action to get families back to work and jumpstart the State’s film and television industry,” Senator Allen said in a statement. “However, we’re at risk of losing this momentum, and all the jobs we’ve created over the last year, if we don’t act by the end of the month. I’m grateful for the support from Governor Newsom, Assemblymember Zbur and the legislative leadership to help us find a path forward that will retain California’s status as the global hub of entertainment.”
Stakeholders say a state budget bill that was signed into law on June 29 has jeopardized the celebrated increase to California‘s film and television tax credit increase to $750 million in 2025. That 2025 boost to the program, the result of some serious lobbying from Hollywood, more than doubled the amount of funding that could be allocated to giving productions tax relief.
